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Interested in IKN Development, Here's a History of Japanese Investment in Indonesia Over the Last Decade

Cindy Mutia Annur 16/02/2023 10:57 WIB

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According to Indonesian Finance Minister Sri Mulyani, Japan is very interested in the development of the Nusantara Capital City (IKN). So, what is the history of Japanese investment in Indonesia over

Japanese Investment Value in Indonesia (2012-2022)

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Interested in IKN Development, Here's a History of Japanese Investment in Indonesia Over the Last Decade

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Japanese Investment Value in Indonesia (2012-2022)

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The Indonesian government will relocate the capital city from Jakarta to Kalimantan in 2024. According to Finance Minister Sri Mulyani, Japan is very interested in the development of the Nusantara Capital City (IKN).

"Especially with policies supporting the IKN development in Kalimantan and the role of the international community," said Sri Mulyani, as quoted by *Katadata.co.id* on Tuesday (February 14, 2023).

Therefore, Sri continued, the government presented the IKN's long-term plan in accordance with the law, the fiscal incentives provided, and steps to increase the role of the private and international sectors in the project.

This was explained to Japanese businesspeople during a working visit to Japan. According to Sri, Japanese companies and the government see business opportunities in the IKN development, particularly in infrastructure and renewable energy, related to net-zero carbon emissions.

Based on a report by the Indonesian Investment Coordinating Board (BKPM), Japanese investment in Indonesia throughout 2022 amounted to US$3.56 billion. This investment value ranks fourth largest last year, after Singapore, China, and Hong Kong.

Over the past few years, Japanese investment in Indonesia has shown a downward trend over the last decade. This is evident in the graph above.

The highest value of Japanese investment in Indonesia was in 2016, reaching US$5.4 billion, while the lowest was in 2021 at only US$2.26 billion.

During the period 2012-2022, there were a total of 35,013 Japanese investment projects in Indonesia. Of these, the most Japanese investment projects entered in 2020, namely 8,817 projects.

Editor : Padjar Iswara

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Interested in IKN Development, Here's a History of Japanese Investment in Indonesia Over the Last Decade

Interested in IKN Development, Here's a History of Japanese Investment in Indonesia Over the Last Decade

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Interested in IKN Development, Here's a History of Japanese Investment in Indonesia Over the Last Decade

Interested in IKN Development, Here's a History of Japanese Investment in Indonesia Over the Last Decade

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